Do Kwon Expected to Change Plea in Terra Fraud Case

Do Kwon's Legal Strategy Takes a Turn?

The legal saga surrounding Terraform Labs founder Do Kwon may be entering a new phase. According to a recent court order, Kwon is expected to appear in federal court and potentially change his previous "not guilty" plea. This development follows his extradition to the United States after a prolonged legal battle in Montenegro related to using a fake passport.

Previously, Kwon pleaded not guilty to multiple fraud and market manipulation charges linked to the collapse of the Terra/Luna stablecoin ecosystem, a debacle that sent shockwaves through the crypto market.

Key Points:

• Judge Paul Engelmayer scheduled a hearing after being advised of a possible plea change.
• Kwon was extradited to the U.S. after being detained in Montenegro for using a forged travel document.
• A trial was tentatively scheduled for January, with prosecutors preparing to review a massive amount of data.
• The court order indicates that Kwon's defense team should review any potential plea agreements or "Pimentel letter" with him before the hearing.
• Kwon and Terraform Labs have already been found liable for civil fraud by the SEC, facing significant penalties.

The Terra network's collapse, which wiped out billions in value, centered on the algorithmic stablecoin TerraUSD (UST) losing its peg and the subsequent devaluation of its sister token, Luna (LUNA).

Whether Kwon will plead guilty to all charges or if a plea deal has been negotiated remains unclear. The upcoming hearing promises to reveal more about the future of this high-profile case.